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Pay attention to this, because it’s your retirement money … November 7, 2011

Posted by WillardWhyte in Musings.
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… that these one-percenters are all about to hunker down and argue about protecting — or not.

This is the opening salvo in what will be a long battle over how much capital backup money market mutual funds need to have to protect ALL shareholders equally in the event of a bad market swing — and possible panic.

And that means what capital “buffer” must be there to cushion against a loss that causes some shareholders to demand their money back — and get it ahead of the folks like you and me who learn of the problem a day or so after it is a problem and way, way after the big money gets up and runs for safety.

Which leaves US with the dirty end of the stick — again — and potentially helps jeopardize the whole sytem, in theory.

It’s a problem that needs addressing — and not with a government bailout fund or “insurance” that does nothing more than send a blaring signal for fund managers to get all risky and Type A on us, knowing taxpayers will be there with the Super Glue when Humtpy falls off the wall. As he will some day.

But its YOUR JOB and mine to listen, to read and to watch these cats at each and every turn. Because while some safeguards are necessary in the view of just about all, there is money to be made by spinning the deal to one’s advantage.

Don’t want to smother the money market mutual fund market with needless red tape and cludgy rules that toss the baby with the bad bathwater.

But the Captains of Industry will try to work their lobbying magic. And they will win if we’re all too damned busy worrying about Lindsey Lohan and who’s on top in our Fantasy Football leagues.

And the needed “buffer” will come out our our end — not theirs.

 

 

 

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